SaaS

https://twitter.com/awilkinson/status/1376985854229504007?s=21

• A story of losing to Asana

In this particular case, I gained a lot of knowledge and insights. Here are the main lessons I learned:

1. If you are operating in a competitive market that is heavily funded by venture capitalists, it would be unwise to compete without raising money. It’s like entering a battle without proper weapons.
2. Having the best product doesn’t always guarantee success, and a great product alone is not a sustainable competitive advantage in the long run.
3. If something significant happens, but no one is there to witness it, it might as well not have happened at all.
4. Almost every developer in the world has thought at some point, “I should build a to-do list app.” People enjoy trying out different productivity apps and workflows. In the productivity industry, there are no strong barriers to entry, so it’s best to avoid it if possible.
5. Operating a Software-as-a-Service (SaaS) business without a deep understanding of metrics like churn rate, customer lifetime value (LTV), customer acquisition cost (CAC), etc., is like flying a plane without any instruments. It’s incredibly foolish and dangerous.
6. Failure often creeps up on you slowly, and then suddenly hits you all at once.
7. Research and development (R&D) is extremely costly, especially when competing against well-funded ventures.
8. If you are competing solely based on features, there is no end to it, and it becomes an ever-increasing expense.
9. A good product with excellent marketing will outperform an amazing product with no marketing.
10. Bootstrapping is most effective in uncompetitive markets or niches, or if you have a distinct advantage such as a personal brand or a unique customer acquisition channel.